In this issue
CVB Fees
As you know, up to this point Chariton Valley Beef (CVB) has operated completely off of grant dollars and support from our partner organizations. Local producers have paid only the direct costs for carcass data and other services we contract for. In some cases grants have even supported part of those expenses. We will continue to seek funding support from various grant programs, but it is critical that our participants pay for some of the expense of offering the services provided by CVB.
The CVB board discussed this issue at the last two meetings, and has proposed the following user fee structure:
Participants (members) in CVB will pay annual user fees (dues) of between $25 to $100 dollars per operation.
Fees are determined as follows:
- Producer fees are based on annual total marketings of beef cattle.
- Minimum fee is $25 per operation.
- Additional fee @ $.25/head marketed by operation per year (all marketings, whether we sell them or not)
- Maximum fee = $100/year/operation
- The CHIPS program has contracted with CVB to offer these services to their members for the next two years. CHIPS members in good standing (dues to CHIPS paid in full) can elect to receive CVB services at no charge beyond the CHIPS dues.
Examples:
- Cow-calf operation with 250 cows, 450 fed cattle marketed:
Market 450 fed cattle/year
($25 + $112.50 = $137.50, over maximum fee)
Fee is $100 per year
- Cow-calf operation with 100 cows, sells 80 feeder calves/year
80 feeders sold/year
$25 + 20 = $45
Fee is $45/year
- CHIPS member - pay no fee to CVB, CHIPS pays direct support
What should you do?
Please pay your fee to CVB by October 1. This fee will pay only a small percentage of the total costs of the program, but will help us as we seek funds. As we continue to coordinate fed cattle grid marketing and data analysis, our services have paid many benefits. We are also trying to network carcass data from feedlots back to cow-calf producers. If you want this to continue, join CVB directly with this membership form, or join through the CHIPS program.
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Grid Marketing Update
We are continuing to market cattle on the various grids.
The Cattlemen's Grid is a direct hit. We have several producers selling cattle through the new Iowa Quality Beef Supply Network. If you bought into this ICA/Excel project, you should seriously consider marketing all your grid cattle through this grid. Some of their premiums are not as high as other grids, but their base price and calculated yield grade have enough advantage to more than make up for the overall difference. This grid includes the "Sterling Silver" premium. Yield grade premiums are paid on Select and up and the calculated yield grades are coming out leaner than expected. There is also a trucking allowance figured since they are currently killing at the Excel plant in Schuyler, NE. If you have complete carcass data including fat depth and ribeye area on a set of cattle we can calculate how they would have paid on that grid. The only way to sell a partial load on this grid is to sell under one name and split the check using the tag transfer.
After Excel, Angus GeneNet is the best place to market high quality black cattle. Eight dollars for Prime and four for CAB is about as high as you will find on a grid with a competitive base price. Ken Conway returns carcass data on the GeneNet cattle faster than any other source we are currently using. These cattle are killed at ConAgra in Grand Island, NE. ConAgra will allow loads to be split between two different producers on the same or different grids and will send separate checks. If you haven't heard yet, cattle no longer need to be 50% Angus to go on this grid.
Also at ConAgra are the Gelbvieh Alliance grids. These grids don't dock for heavies until you hit 1000 pounds carcass weight. (Most grids dock at 950.) Their "Marbling Grid" pays $3 for CAB and equals GeneNet on yield grades 1 and 2 (Choice & up only.) Their "Muscle Grid" pays a lower yield grade premiums but includes Selects in those premiums.
Angus America killed at Excel in Schuyler is a good option for high quality cattle that may not all be black. The "Sterling Silver" designation is given to cattle that would have made CAB except for hide color and the premium equals CAB. The base price for this grid is harder to predict, but it is usually in the ballpark with ConAgra or slightly better. Minimum load for this grid is 35 head - no split checks.
IBP's Real Time Grid is a good option if you want to send a few at a time, if you don't want much of a freight bill, or you have a good past relationship with IBP. The base price now is established on formula similar to the other grids, and that price is not determined until after the cattle are delivered. They usually pay $6.50 for a yield grade 1, $2.50 for yield grade 2, from $2.00 to 5.00 for CAB, and $10 or more for a Prime. These premiums change periodically so you need to check with your buyer. Some of the discounts won't be as stiff at IBP, but you also need to verify that with the buyer. We can contract to get full carcass data at IBP, but you need to contact us as soon as possible.
Greater Omaha also has a grid that is offered. Terms are negotiated with your local buyer.
If you have past carcass data we can analyze how your cattle would fit on several grids. Call Diana if you want this done. No matter where you are marketing you should make sure you keep current. The Choice/Select spread is low now and the experts are telling us not to look for the base price to rise any time soon. Unless you have nothing else to do with your corn, keeping your cattle on feed for extra weeks while you wait and watch the markets won't help your bottom line this summer. If you need someone to look at your cattle and your operation, to help discuss your options give us a call.
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Feeder Cattle Marketing
CVB Source Verification of feeder calves has been through its second year now. We have tried to present calves that meet a high health standard, and have good documentation as to how they have been handled. We have found buyers who appreciate this information and are willing to work with us on getting data back to the producer. We have also had a lot of calves sold that become impossible to follow. Several feeders have contacted us this year looking for SV calves that will work on grid markets - we do not have the numbers or the information needed to fill these orders.
This year the calves were issued a CVB ear tag. This tag was designed to help us track the calves as they move on to new owners. We have tried to track down as many buyers as possible and follow the cattle we can through to slaughter. We have gotten carcass data back on some of the cattle this year and have made contacts that may bring us data on more calves. When there are just a few SV calves in a lot with hundreds of calves it is not very practical to get the data back - we have to work where we can get the best results.
We are looking for better ways to follow the Source Verified calves. We may provide an internet listing for groups of calves. We may also list feeder calf auctions where calves are Source Verified, Green tagged, or have high quality background information. We need to know how many of you would be interested in this kind of listing. If you have any comments please let us know. Obviously the feeder cattle prices are good this year, and you will get a good price however you sell them. This source verification program will pay benefits in future years when the prices are low and the data is more important.
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Eastern Iowa Beef Tour
We have the registration form for a tour coming up right after State Fair. If you are interested you should send your fee in ASAP. Also check out the info on motel reservations. That needs to be taken care of right away. If you are past the deadline call and check on room availability.
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Zero In
Some of us will be a little harder to reach over the next week as we "zero in" on State Fair. We do return messages, so give a call if we can answer any of your questions.
Joe Sellers
Field Specialist/Livestock/Beef
JS/dvb
